Futures Stock Daily Commentary

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Malaysia Daily 19/12/14

RESULTS REVIEW
Berjaya Sports Toto: Maintain Hold
Weak sales continue to weigh
•Results were in line but due to low prize payout.
•Sales continue to weaken; cut earnings estimates by 9-11%.
•Maintain HOLD but cut TP from MYR3.95 to MYR3.50.

Technicals
A rebound to alleviate oversold readings
The FBMKLCI rose 18.05 points to 1,699.95 yesterday, while the FBMEMAS and FBM100 also closed higher by 143.62 points and 128.25 points, respectively. We recommend a “Nibble on Dips” stance for the index.
Trading idea is a Take Profit call on SEM with downside target areas at MYR1.24 & MYR1.11.

Other Local News
Tenaga Nasional (TNB): No change in tariff yet due to low coal price. TNB is yet to know the net effects of the falling ringgit and coal prices on the tariff. Tariffs will remain fixed until June 30 next year and coal prices should remain at current levels until next year. TNB are expecting some translation loses on the 12% of its borrowings which are denominated in USD as the ringgit depreciates against the dollar. On a separate note, TNB has confirmed yesterday that it had been offered a 25% stake in 1MDB's Jimah East coal-fired plant and are in the process of conducting due diligence. (Source: The Edge Financial Daily)

Bumi Armada: Ananda Krishnan looking to exit Bumi Armada?. Tycoon T Ananda Krishnan is looking to sell his entire 34.9% stake in Bumi Armada, Asia's largest floating, production, storage and offloading (FPSO) company. Some oil and gas service companies have been approached to take up his stake in Bumi Armada with the deal possibly by cash or share swap in the purchaser's company. (Source: The Edge Financial Daily)

SapuraKencana Petroleum: Not affected by Petrobras cut. SapuraKencana Petroleum will not be affected by the cut in expenditure by Petroleo Brasileiro SA (Petrobras) after the latter was reported curbing its refining and exploration spending in response to the collapse in crude oil prices and difficulties in tapping debt markets in a corruption probe. (Source: The Edge Financial Daily)

Outside Malaysia
U.S: Leading indicators rose in November for third month, a sign the economy is gaining traction heading into 2015. The Conference Board's index, a gauge of the outlook for the next three to six months, increased 0.6% in November, matching the prior month's gain. (Source: Bloomberg)

U.S: Jobless claims decrease to lowest level in six weeks. The number of Americans filing for unemployment benefits fell last week as the economy's continued improvement tempered dismissals. Jobless claims decreased by 6,000 to 289,000 in the week ended Dec. 13, the fewest since early November, a Labor Department report showed. Claims have been below 300,000 for 13 of the past 14 weeks. (Source: Bloomberg)

Germany: Business confidence rose for a second month in a sign that Europe's largest economy is overcoming the weakness it hit earlier in the year. The Ifo institute's business climate index, based on a survey of 7,000 executives, advanced to 105.5 in December from 104.7 in November, when it rose for the first time in seven months. (Source: Bloomberg)

China: New-home prices fell in fewer Chinese cities last month after the government eased property curbs and cut interest rates for the first time since 2012, boosting demand. Prices dropped in 67 cities of the 70 tracked by the government from October, the National Bureau of Statistics said. Prices fell in 69 cities in October. (Source: Bloomberg)

Indonesia: Plans fixed fuel subsidy next month to limit risks. Indonesia plans to shake up its decades-old oil pricing system by introducing a fixed fuel subsidy next month or by scrapping gasoline subsidies, to limit a trade deficit and reduce vulnerability to an emerging market sell off. The size of the cap has yet to be decided, and the government will take into account oil prices and the exchange rate, Finance Minister Bambang Brodjonegoro told reporters in Jakarta. Options that will be discussed include removing the gasoline subsidies and imposing a fixed subsidy for diesel, said Sofyan Djalil, Coordinating Minister for Economic Affairs. (Source: Bloomberg)

 

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Futures Crude Palm Oil 19/12/14

Technical Outlook
CPO March futures gapped up registering day low at RM 2,135 and reaching day high at RM 2,163 to settle + 17 points at RM 2,148. Total volume of 52,238 lots was traded with open interest at 183,790 contracts held.
Palm reacted to a technical rebound in crude oil prices and a slightly stable soybean oil market. Candlestick shows a “spinning top” pattern which is a sign of uncertainty or equilibrium in market forces. Overall, overseas substitute oils are generally in fundamentally bearish mode. Therefore, upside rallies are deemed to be temporary in nature, subject to persistent selling interests.
Technically, prices are capped by the 10 and 20 days moving averages trend indicators at RM 2,157 and RM 2,171 respectively which are the current resistance points. Support is pegged at RM 2,109. With an impending long holiday week approaching, traders may seek short term and quick intraday gains. A break below support by closing is a negative signal.
Market view: Profit taking pullback with intraday rallies attracting selling interests.

Palm Oil
Malaysian palm oil futures edged up on Thursday, swelled by a jump in crude oil prices, while wet weather warnings across parts of the second-largest grower stoked concern that yields of the tropical oil will drop this month.
Soybean Oil
Soybean, rapeseed and palm oil prices as well as those for oil and meal crushed from oilseeds are forecast to slide in the year through June amid ample supplies, industry analyst Oil World said.
Rotterdam prices for Brazilian soybeans may average $452 a metric ton in 2014-15, falling 19 percent from $556 a year earlier, the Hamburg-based researcher wrote in an e-mailed report today. Prices for European rapeseed may fall 16 percent in Hamburg to $435 a ton from $518, according to Oil World.
U.S. farmers are finalizing a record soybean harvest, with production seen rising to 107.7 million tons from 91.4 million tons, according to the USDA. European Union rapeseed output rose to 22.5 million tons this year from 20.9 million tons, data from the 28-nation bloc show.

 

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Futures FKLI Index 23/12/14

Technical Outlook
FKLI gained for the fourth consecutive days amid on the overnight rally at Wall Street and positive opening at most regional markets and improving global outlook. At the end of the trading, FKLI closed 5 points premium over cash market.
Technically, December 2014 contract Closed the day high at 1749.0 after touched the day high at 1749.5. The “White Marubozu” indicates that buyers controlled the price action from the first trade to the last trade. The price managed to closec above the 10SMA at 1718.5 and is expected to test the resistance at 1753.5-1765 while support located around 1738.5-1725.0.

Local Markets
Local stocks extended rebound from past two weeks heavy losses as bargain hunting continues on blue chip stocks who were hit by recent plunge in oil prices. The Crude oil price however recovered for the past few days signalling the worst might be over. The benchmark index saw a heavy plunge led by oil and gas sector with stocks from SapuraKencana and Petronas related counters getting hit hard. The recover though is in line with other regional bourses which saw gains from Japan to China among others. The FBM KLCI index jumped 28.06 points or 1.64% to close at 1,744.05. Gainers beat losers 695 to 203 while 221 counters were unchanged.
Index futures contract settled higher across the board tracking the much stronger cash market with the spot month settlement closing just a tick from its day high. The December contract gap up at the opening and remains in the green for the rest of the day with strong volume surged in the last 30 minutes of trading possibly from strong profit taking activities. The contract closed 2.13% higher or 36.5 points at 1,749.0. Total volume traded was recorded at 13,673 lots while open interest stood at 30,560.
Asian Region
Stocks in Japan rose as energy shares recover from a broad crude oil sell-off as oil and coal products companies rallied. The higher close also saw the benchmark index closing at its highest level since December 9th. Nikkei 225 index rose 0.1% to settle at 17,635.14 while TOPIX gained 0.2% to close at 1,413.05
China stocks closed marginally higher as banks and electrical utilities jumped to push the benchmark indices in the green. Electric utilities had a strong trading day after local media reports on China might launch a utility reform scheme by early 2015. The banks were also among the most active stocks with Bank of China, Agriculture Bank of China and Minsheng Bank all recorded strong gains. The Shanghai Composite Index ended the day 0.7% higher at 3,127.44
Hong Kong market recovers from recent declines as crude oil prices seemingly stabile while also finding support from mainland related shares. The city benchmark index hold on to solid gains after recent plunge in oil price hit energy shares along with other regional markets. The Hang Seng index rose 1.3% to close at 23,407.57
US Market
U.S. stocks rose for a fourth straight session on Monday, with both the Dow and S&P 500 ending at records as large-cap technology shares gained and offset continued weakness in energy names. Major indexes opened with slight gains but strengthened throughout the session, ending near their highs of the day

 

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Malaysia Daily 23/12/14

RESULTS REVIEW
Yinson Holdings: Maintain Buy
Sterling results, raising forecast Shariah-compliant
•9MFY1/15 core net profit was 88% of ours/consensus 12M’s MYR120m forecasts; raising FY1/15 EPS estimate by 26%.
•High chance of winning a FPSO job, a major catalyst.
•Reiterate BUY. MYR3.03 TP (18x FY1/17 PER) under review.

Other Local News
Water: MMC Corp: Salcon consortium wins MYR470m deal. MMC Corp has awarded a MYR470m sewage treatment contract to a proposed consortium comprising Salcon and Loh & Loh Construction Sdn Bhd. The 70-month project started yesterday and is due for completion on October 19 2020, which will involve the construction and maintenance of the facility within the Sungai Langat area in Selangor. (Source: The New Straits Times)

Transportation: Prasarana Malaysia, Azmi appointed as Prasarana group MD. Azmi Abdul Aziz, former head of Rapid KL rail operations will return to Prasarana Malaysia to take the helm as the group managing director from Jan 1, 2015 replacing Datuk Seri Shahril Mokhtar, who has been appointed the new CEO of Mass Rapid Transit Corp Sdn Bhd. Azmi is currently serving as chief development officer of the Land Public Transport Commission (SPAD). (Source: The New Straits Times)

Bina Puri Holdings: Bags MYR64.99m job, brings order book to MYR2b. Bina Puri Holdings through its wholly-owned subsidiary Bina Puri Sdn Bhd has bagged additional upgrading works for the proposed new Sabah State Administrative Complex in Sabah worth MYR64.99m. The project will commence construction today and has a completion period of 16 month will bring its unbuilt order book to MYR2.01b. (Source: The Edge Financial Daily)

NCB Holdings: NCB, MMC yet to talk about collaboration. NCB Holdings controlled by Permodalan Nasional Bhd (PNB) has still yet to make plans for future collaboration with MMC Corp. The group board of directors is scheduled to meet in the middle of next month and MMC Corp is due to appoint a representative to the board. NCB are also targeting to raise the asset utilisation rate from the current 75% to 90% by end 2015. (Source: The Edge Financial Daily)

Outside Malaysia
U.S: Housing in uneven recovery as home sales decrease. Sales of previously owned U.S. homes slumped in November from a one-year high, underscoring the uneven nature of the current recovery in residential real estate that’s been one of its defining characteristics. Purchases fell 6.1% to a 4.93m annual rate last month, the weakest reading since May, from a 5.25m pace in October, figures from the National Association of Realtors showed. Demand dropped in all regions of the country, suggesting anomalies such as bad weather were not at play, the group said. (Source: Bloomberg)

China: Ruble swap shows country challenging IMF as emergency lender. China is stepping up its role as the lender of last resort to some of the world’s most financially strapped countries. Chinese officials signaled Saturday that they are willing to expand a USD 24b currency swap program to help Russia weather the worst economic crisis since the 1998 default. China has provided USD 2.3b in funds to Argentina since October as part of a currency swap, and last month it lent USD 4b to Venezuela, whose reserves cover just two years of debt payments. By lending to nations shut out of overseas capital markets, Chinese President Xi Jinping is bolstering the country’s influence in the global economy and cutting into the International Monetary Fund’s status as the go-to financier for governments in financial distress. While the IMF tends to demand reforms aimed at stabilizing a country’s economy in exchange for loans, analysts speculate that China’s terms are more focused on securing its interests in the resource-rich countries. (Source: Bloomberg)

 

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Futures Crude Palm Oil 23/12/14

Technical Outlook
CPO March futures gapped up registering day low at RM 2,152 and reaching day high at RM 2,174 to settle + 18 points at RM 2,171. Total volume of 32,464 lots was traded with open interest at 182,837 contracts held.
Palm reacted to a technical rebound in crude oil prices and a slightly stable soybean oil market. Candlestick shows a “spinning top” pattern which is a sign of uncertainty or equilibrium in market forces. Overall, overseas substitute oils are generally in fundamentally bearish mode. Therefore, upside rallies are deemed to be temporary in nature, subject to persistent selling interests.
Technically, prices are capped by the psychology resistance at RM 2 200 further up to RM 2 222. Support is pegged at RM 2,152 further down to RM 2 127. With an impending long holiday week approaching, traders may seek short term and quick intraday gains. A break below support by closing is a negative signal.
Market view: Profit taking pullback with intraday rallies attracting selling interests

Palm Oil
Palm oil futures fpr delivery in March gain as much as 1% to 2,174 Ringgit per metric ton on Bursa Malaysia Derivatives, the highest level for most active contract since December 15th. Palm oil exports for Malaysia will remain duty free for a sixth month as the government seeks to boost shipments and reduce investories to support prices.
Refined palm oil for May gained 0.8% to close at 4,950 Yuan per metric ton on Dalian Commodity Exchange.
Soybean Oil
Soybean futures for March delivery rise 0.7% to close at $10.4575 a bushel and soybean oil futures for March delivery rise 0.03% to close at $32.17 a pound on Chicago Board of Trade. In the week ended December 18th, U.S. inspected 2.23 millin metric ton for export, up 19% from week wealier, USDA data reported.
As at 10 a.m, soybean oil is trading at $32.12 a dip of 0.16% from previous closing price and soybean is trading at $10.4225 a 0.033% dip from previous closing price.

 

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Futures FKLI Index 24/12/14

Technical Outlook
Spot month contract manage to close in the green yesterday stalling just above the daily 20 days moving average 1,748.5 after spending some time underwater in the morning and first part of afternoon trading. MACD buy signal noted and has indeed taken off well coinciding with the hook up of RSI and Stochastic line though both momentum indicators suggest weakening seller rather than buying momentum. A Doji chart pattern though develops in yesterday daily candle indicating uncertainty in the market ahead of the Christmas holiday tomorrow. Range bound trading is expected for today as investors might be reluctant to take in heavy position in view of market holiday.
Support should stand at hourly 10 MA 1,746.5 and hourly 20 MA 1,734.0. Resistance should cap at 1,754.5 and 10th December high at 1,765.0.

Local Markets
Local stocks closed higher as buying interest continue to surface from recent plunge in the market sparked by oil price drop while fund managers also engaged in window dressing exercise ahead of the holidays. The index was largely boosted by positive sentiment and saw the benchmark index extending to another day recovery. The FBM KLCI index closed 5 points higher at 1,749.05
Index futures contract settled mostly higher following the stronger cash market performance. The most active spot month contract swing between gain and losses throughout the day between the day high and low of 1,753.5 and 1,740.5 forming a smaller then recent trading range. The December contract eventually settled just a point higher from previous close at 1,750.0 and a point premium against the underlying index. Total turnover remain higher than average at 14,349 lots traded as month-end rollover starts to pick up while open interest rose from 30,560 to 32,020 contracts.
Asian Region
China stocks ended lower as concern grew on valuation of certain stocks while a slowing economy would curb earnings growth. Stocks has been on a rally after recent less than upbeat economic data boosted optimism of more monetary stimulus to be impose by the Government pushing the benchmark index to a four-year high at previous trading day. The Shanghai Composite Index settled 3% lower closing at 3,032.61
Hong Kong market closed in the red with the financial sector dragging down the index. Sharp fall in mainland shares spark selling in related shares ahead of the holiday season which saw a lower than average turnover. Hang Seng index settled 0.3% lower at 23,333.69
US Market
Wall Street closed higher with the Dow reaching the 18,000 mark for the first time after reports of a faster than expected economic growth. Gross Domestic Product (GDP) of the world’s largest economy grew at 5% beatings median forecast of 4.3% and a jump from previous 3.9% from previous quarter in a data release by Commerce Department. Both benchmark S&P and Dow is on a five days winning streak as the Christmas Rally brings cheer to investors and overshadow declines in health-care companies.
The Dow Jones industrial Average added 64.73 points or 0.4% to close at 18,024.17 while S&P 500 index rose 0.2% to settle at 2,082.17

 

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Gold Market Daily Commentary 24/12/14

Overnight Market
•Gold futures ended lower on Tuesday, tracking rising global equity markets after a final reading showed US Economy have grown more than expected in the third quarter.
•Gross domestic product grew at a 5% annual rate from July through September, the biggest increase since 2003, revised figures from the Commerce Department.
•The U.S. dollar index rallied to a four-year high in the immediate aftermath of the GDP report, and gold prices sold off.
•Trading activity faded as the day wore on Tuesday, ahead of the Christmas holiday Thursday. Look for trading volumes in most markets to remain light until the new year begins.
•The Russian ruble has stabilized this week, following last week’s serious erosion against the U.S. dollar and other major currencies. Reports Tuesday said the Russian central bank sold USD420 million of its foreign currency reserves last week to support the beleaguered ruble.

BURSA Gold

Gold futures contracts on Bursa Malaysia Derivatives closed lower yesterday as the global gold price benchmark dropped sharply overnightDecember 2014 tumbled 48 ticks to RM132.65 a gramme, January 2015 fell 40 ticks to RM133.10 a gramme, February 2015 declined 32 ticks to RM133.80 a gramme, while April 2015 dipped 27 ticks to RM134.20 a gramme. June 2015 shed 21 ticks to RM135.30 a gramme, August 2015 decreased 28 ticks to RM135.95 a gramme, while October 2015 eased 39 ticks to RM136.40 a gramme. Open interest is at 3749 contracts while turnover stood at 94.
For today, gold price may tradedlower as the U.S. dollar index rallied to a four-year high in the immediate aftermath of the GDP report. Support located around 129.95 while resistance located at 133.80.

COMEX Gold

Gold futures slid in thinly-traded holiday action today as strong U.S. growth data pushed the greenback higher and made dollar-denominated commodities more expensive for foreign buyers. A Commerce Department report on Tuesday showed U.S. gross domestic product increased much more than previously estimated in the third quarter, reflecting notably stronger consumer spending growth. Gold for February delivery, the most actively traded contract, dropped USD1.80 or about 0.2 percent, to settle at USD1,178.00 an ounce on the Comex.
Technically, gold bears possess the overall near-term technical advantage. The Spinning Tops formation on the daily candle could represents Indecision.First resistance is seen at today’s high of USD1,184.90 and then at USD1,190.00. First support is seen at Monday’s low of USD1,170.70 and then at USD1,160.00.

 

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Malaysia Daily 24/12/14

ECONOMICS
Singapore CPI, Nov ‘14
From dis-inflation to deflation
•Headline inflation contracted by -0.3% YoY in Nov 2014 (Oct 2014: +0.1% YoY), mainly on lower costs on COE and housing.
•Core inflation rate (CPI ex-accommodation and private road transport) eased further to +1.5% YoY (Oct 14: +1.7% YoY).
•Keep our 2014 CPI estimate at +1.0% (YTD 2014: +1.1%) and expect 2015 inflation rate to stay subdued at 1.0%-1.5% range.

COMPANY UPDATE
Yinson Holdings: Maintain Buy
Eyes Ghana FPSO job
•Leading the pack for Ghana's OCTP FPSO tender.
•Divestment of non-core O&G business likely in 2015.
•Reiterate BUY. MYR3.03 TP (18x FY1/17 PER) under review.

REGIONAL SECTOR UPDATE
The Cockpit View (Issue #4): Maintain Overweight
Dear Santa
•Bloomberg Asia Pacific Airline Index dipped this week, first since 1.5 months
•Holiday week, little trading activity, uptrend still strong
•Stay OVERWEIGHT for record industry profits in 2015. We have BUYs on AirAsia, Cebu Air, AAV and Singapore Airlines

Other Local News
Aviation: MAHB may miss CPC issuance deadline. Malaysia Airports Holdings Bhd (MAHB) looks set to miss a year-end deadline to issue a certificate of practical completion (CPC) for klia2's main terminal to the joint venture (JV) of UEM Construction Sdn Bhd and Bina Puri Holdings as the latter had failed to comply with certain criteria, including some minor testing of the facilities and documentations. (Source: The Edge Financial Daily)

Lafarge Malaysia: Unit clinches MYR254m job. It's wholly-owned subsidiary, Lafarge Cement Sdn Bhd has clinched a MYR254m contract from Petronas Refinery and Petrochemical Corporation Sdn Bhd for the supply of concrete for the Refinery and Petrochemicals Integrated Development (Rapid) project and other Petronas-related projects in Pengerang, Johor. The package 21D contract is for five years. (Source: The New Straits Times) In a separate news, Lafarge's wholly-owned subsidiary Associated Pan Malaysia Cement Sdn Bhd has signed a sale and purchase agreement with Lafarge Ciment (Romania) SA to purchase a cement mill in Port Klang and ancillaries for MYR45.96 cash. The acquisition is expected to be completed in the first quarter of next year. (Source: The Edge Financial Daily)

Malayan Banking (Maybank): Disposes of Philippines unit with MYR83.7m assets. Maybank through its indirect subsidiary, Maybank ATR Kim Eng Capital Partners Inc has disposed its entire ownership of Philippines-based indirect subsidiary ATR Kim Eng Land Inc (ATRKE Land) which has total assets worth MYR83.7m to Rockwell Primaries Development Corp, ATR Holdings Inc and Dragon Eagle International Ltd. (Source: The Edge Financial Daily)

Outside Malaysia
U.S: New-home sales unexpectedly fall to four-month low in November, underscoring a lack of momentum this year in residential real estate. Sales dropped 1.6% to a 438,000 annualized pace last month following a 445,000 rate in October that was weaker than previously estimated, Commerce Department figures showed. Strict bank lending standards and rising property prices have bridled the industry this year following a pickup in 2013. Further growth in employment opportunities and persistently low borrowing costs may help provide a spark for the housing market in 2015. (Source: Bloomberg)

U.S: Consumer spending beats forecast as gasoline prices drop. Household purchases climbed 0.6%, the most in three months, after a 0.3% October gain that was larger than previously estimated. Incomes advanced 0.4%, the most since June, and the savings rate dropped. (Source: Bloomberg)

Russia: Bank of Russia pledges to rescue trust as Ruble crisis hits. Russia’s central bank provided a 30 billion-ruble (USD 531m) bailout for National Bank Trust, its biggest rescue since the ruble crisis began this month. The Deposits Security Agency will take control of National Bank Trust, one of the country’s top 15 lenders by retail savings, while the central bank selects an investor to help shore up the company, the Bank of Russia said in a statement. (Source: Bloomberg)

 

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Futures Crude Palm Oil 24/12/14

Technical Outlook
FCPO futures soared on Tuesday sending prices to its highest in one month closing. Price gapped down first to hit the day low at 2160 before surge to the day high of 2215. Technically "Long white candle “formed on the daily candle could suggests buying pressure. Prices have broke above its SMA-10 50 and 100 lines at 2163, 2196 and 2159 respectively.
The MACD histogram showing bullish convergence. However, the Fast Stochastic is in the overbought level at 82.84. Price may test the resistance at 2236 to 2270 while support located around 2180-2160.

Palm Oil
Palm oil futures for delivery in March gained 1.8% for the day to close at 2,209 Ringgit per metric ton on Bursa Malaysia Derivatives, highest settlement for most active contract since November 26th. Palm oil prices retreated 0.8% last week and has dropped 17% YTD.
Refined palm oil for May delivery dipped 0.5% to close at 4,.924 Yuan per metric ton on Dalian Commodity Exchange.
Soybean Oil
Several soybean growing areas in Argentina and Brazil had been experiencing a "very dry" weather, causing production prospects to deteriorate, Oil World reported. Although it is still early in the season and some believe that the conditions may improve, however the researchers found that some of the areas soil moisture is less than normal, crops will be stressed if required moisture doesn't arrive.
Soybean oil for March delivery gained 0.59% to close at $32.36 a pound while soybean for March delivery closed at $10.4575 unchanged.
As at 10.00 a.m, soybean oil is trading at $32.48 a 0.37% gained from previous closing price while soybean is trading at $10.4850 a bushel 0.26% gained from previous closing price.

 

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Futures Crude Palm Oil 29/12/14

Technical Outlook
CPO March futures opened higher reaching day high at RM 2,252 and the day low at RM 2,200 before closing with a total gained of 33 points at RM 2,250. Total volume of 32,884 lots was traded with open interest at 175,853 contracts held.
The market was up in tandem with the stockpile concern as Malaysia is
experiencing a heavy rain as well as flood on certain areas. It was reported that the yield on palm oil for the next few months is likely to be affected due to the weather changes. An increase in palm oil prices also pushed up the vegetable oil prices.
Palm oil futures has formed a “bullish engulfing” candle stick formation, giving clues that the market is in the bullish momentum and the momentum is likely to continue for today session and with the overnight soybean oil prices it could provide support on the palm oil prices.
Palm oil prices is seen to be supported at RM 2,200 and the resistance is placed at RM 2,311.

Palm Oil
Palm oil futures for March delivery gained 1.5% to 2,250 Ringgit per metric ton on Bursa Malaysia Derivatives, the highest since November 18th, erasing early losses. Palm oil prices has gained 4.5% this week, the most since period ended October 31st and as of YTD it has fallen 15%.
Refined palm oil for May closes little changed at 4,932 Yuan per metric ton on Dalian Commodity Exchange.
Soybean Oil
Soybean futures for March delivery gained 1.8% to $10.54 per bushel on Chicago Board of Trade while soybean oil futures for March delivery climb 1.7% to $32.59 per pound after reaching to $32.84, highest for most active contract since November 28th. Soybean futures were up mainly due to excess rain and flooding in Malaysia which subsequently pushed up the palm oil and other vegetable oils prices.
As at 10.15 am, soybean oil is trading at $32.59 a pound a gained of 1.10% while soybean is trading at $10.5975 a 0.64% gained from previous closing price.